Qualcomm, Apple & Samsung: Behind a $620m Class Action Suit
Consumer advocacy group Which? has brought Qualcomm before the Competition Appeal Tribunal in London, marking the start of what could become one of Britain's largest technology sector class actions.
The case centres on allegations that the US chip manufacturer exploited its market position to inflate costs for Apple and Samsung smartphones sold between October 2015 and January 2024.
Nearly 29 million UK consumers who purchased smartphones from either manufacturer during this period stand to receive compensation averaging £17 (US$22) per device if Which? prevails in its claim for US$620m in damages.
The trial, expected to run for five weeks, will first determine whether Qualcomm held a dominant market position and subsequently abused that power through its licensing arrangements.
Lengthy legal proceedings
Lisa Webb, Senior Lawyer at Which?, acknowledged the protracted nature of competition litigation when speaking to the BBC recently.
"We filed this claim back in 2021, so this first trial being now in 2025 – it's obviously a bit of a slog," she said.
The current proceedings represent only the liability phase of the case.
Should Which? succeed in establishing Qualcomm's market abuse, a second stage would follow to determine the precise compensation owed to affected consumers.
"But the real benefit of this system is that as a consumer, you don't need to do anything... if we win, we will get you your money," Lisa added.
This opt-out structure means eligible smartphone purchasers need take no action to participate in the claim.
Questionable pricing models
Which? alleges that Qualcomm leveraged its position as a dominant supplier of smartphone chips to impose excessive licensing fees on manufacturers.
The consumer group contends these inflated costs were passed directly to consumers through higher retail prices for Apple and Samsung devices.
Qualcomm has not responded to requests for comment on the current proceedings.
The company previously dismissed the case as having "no basis" when Which? first filed the claim in 2021.
Regulatory scrutiny
Qualcomm's business practices have attracted attention from competition authorities across multiple jurisdictions.
The European Union previously fined the company for antitrust violations, whilst a parallel case is currently progressing through Canadian courts.
In 2017, the US Federal Trade Commission brought suit against Qualcomm over what it characterised as unfair technology licensing practices.
That case was ultimately dismissed in 2020, demonstrating the complexity of proving anti-competitive conduct in the technology sector.
Anabel Hoult, CEO of Which?, frames the proceedings as a test of collective consumer power.
"This trial is a huge moment. It shows how the power of consumers – backed by Which? – can be used to hold the biggest companies to account if they abuse their dominant position," she says.
The outcome could establish precedents for how competition law applies to licensing arrangements in the smartphone supply chain, particularly regarding the pass-through of component costs to end consumers.
